adnt-20211110
0001670541FALSE00016705412021-11-102021-11-10

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): November 10, 2021

ADIENT PLC
(Exact name of registrant as specified in its charter)

Ireland001-3775798-1328821
(State or Other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification Number)
 25-28 North Wall Quay, IFSC
Dublin 1, Ireland D01 H104
(Address of principal executive offices)

Registrant’s telephone number, including area code: 734-254-5000


Not Applicable
(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of classTrading symbol(s)Name of exchange on which registered
Ordinary Shares, par value $0.001ADNTNew York Stock Exchange


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17     CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition.

On November 10, 2021, Adient plc issued a news release announcing its financial results for the fourth quarter and fiscal year ended September 30, 2021. The news release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information contained in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.
EXHIBIT INDEX
Exhibit No.Exhibit Description
99.1
104
Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ADIENT PLC
Date: November 10, 2021By:/s/ Heather M. Tiltmann
Name:Heather M. Tiltmann
Title:
Executive Vice President, Chief Legal and Human Resources Officer, and Corporate Secretary


Exhibit 99.1

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Appendix
Page 1

Adient plc
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions, except per share data)2021202020212020
Net sales$2,771 $3,597 $13,680 $12,670 
Cost of sales2,734 3,352 12,854 12,078 
Gross profit37 245 826 592 
Selling, general and administrative expenses104 151 537 558 
(Gain) loss on business divestitures - net26 (12)26 13 
Restructuring and impairment costs1 135 21 238 
Equity income (loss)1,264 79 1,484 22 
Earnings (loss) before interest and income taxes1,170 50 1,726 (195)
Net financing charges55 64 311 220 
Other pension expense (income)(16)19 (24)14 
Income (loss) before income taxes1,131 (33)1,439 (429)
Income tax provision (benefit)159 (18)249 57 
Net income (loss)972 (15)1,190 (486)
Income attributable to noncontrolling interests12 21 82 61 
Net income (loss) attributable to Adient$960 $(36)$1,108 $(547)
Diluted earnings (loss) per share$10.02 $(0.38)$11.58 $(5.83)
Shares outstanding at period end94.4 93.9 94.4 93.9 
Diluted weighted average shares95.8 93.9 95.7 93.8 




Appendix
Page 2

Adient plc
Condensed Consolidated Statements of Financial Position
(Unaudited)

September 30,
(in millions)20212020
Assets
Cash and cash equivalents$1,521 $1,692 
Accounts receivable - net
1,426 1,641 
Inventories960 685 
Assets held for sale49 43 
Other current assets1,113 421 
Current assets5,069 4,482 
Property, plant and equipment - net1,607 1,581 
Goodwill2,212 2,057 
Other intangible assets - net555 443 
Investments in partially-owned affiliates335 707 
Assets held for sale25 27 
Other noncurrent assets959 964 
Total assets$10,762 $10,261 
Liabilities and Shareholders' Equity
Short-term debt$184 $210 
Accounts payable and accrued expenses2,502 2,553 
Liabilities held for sale16 46 
Other current liabilities792 1,010 
Current liabilities3,494 3,819 
Long-term debt3,512 4,097 
Other noncurrent liabilities798 767 
Redeemable noncontrolling interests240 43 
Shareholders' equity attributable to Adient2,376 1,213 
Noncontrolling interests342 322 
Total liabilities and shareholders' equity$10,762 $10,261 



Appendix
Page 3

Adient plc
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Operating Activities
Net income (loss) attributable to Adient$960 $(36)$1,108 $(547)
Income attributable to noncontrolling interests12 21 82 61 
Net income (loss)972 (15)1,190 (486)
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation75 81 285 295 
Amortization of intangibles16 10 45 37 
Pension and postretirement benefit expense (benefit)(15)21 (16)23 
Pension and postretirement contributions, net(5)2 (23)(19)
Equity in earnings of partially-owned affiliates, net of dividends received(62)(61)44 24 
(Gain) on sale / impairment of nonconsolidated partially owned affiliate(1,181)9 (1,214)231 
Premium and transaction costs paid on repurchase of debt— — 50 — 
Retrospective recoveries of Brazil indirect tax credits— — (38)— 
Derivative loss on the 2021 Yanfeng Transaction6 — 30 — 
Deferred income taxes45 (20)40 (33)
Non-cash restructuring and impairment charges— 26 11 53 
Loss (gain) on divestitures - net26 (12)26 13 
Equity-based compensation— 7 36 15 
Other5 14 21 24 
Changes in assets and liabilities:
Receivables288 (516)483 190 
Inventories(88)62 (246)78 
Other assets145 63 82 140 
Restructuring reserves(18)(20)(136)(80)
Accounts payable and accrued liabilities(263)884 (405)(251)
Accrued income taxes(48)(17)(5)(8)
Cash provided (used) by operating activities(102)518 260 246 
Investing Activities
Capital expenditures(74)(68)(260)(326)
Sale of property, plant and equipment7 10 30 15 
Settlement of derivatives(12)— (12)10 
Acquisition of businesses, net of cash acquired60 — (211)— 
Business divestitures713 499 785 499 
Changes in long-term investments— — — (37)
Loans to affiliates— — 15 — 
Other— 5 — 5 
Cash provided (used) by investing activities694 446 347 166 
Financing Activities
Increase (decrease) in short-term debt(41)(180)(5)(16)
Increase (decrease) in long-term debt— — 214 600 
Repayment of long-term debt(5)(102)(895)(108)
Debt financing costs— — (8)(10)
Dividends paid to noncontrolling interests(3)(4)(69)(71)
Other(3)— (7)(2)
Cash provided (used) by financing activities(52)(286)(770)393 
Effect of exchange rate changes on cash and cash equivalents(4)(15)8 (34)
Increase (decrease) in cash and cash equivalents, including cash classified within current assets held for sale536 663 (155)771 
Less: Cash classified within current assets held for sale(15)(3)(16)(3)
Increase (decrease) in cash and cash equivalents$521 $660 $(171)$768 


Appendix
Page 4

Footnotes
1. Segment Results

Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which is inclusive of North America and South America; 2) Europe, Middle East, and Africa ("EMEA") and 3) Asia Pacific/China ("Asia").

Adient evaluates the performance of its reportable segments using an adjusted EBITDA metric defined as income before income taxes and noncontrolling interests, excluding net financing charges, qualified restructuring and impairment costs, restructuring related-costs, net mark-to-market adjustments on pension and postretirement plans, transaction gains/losses, purchase accounting amortization, depreciation, stock-based compensation and other non-recurring items ("Adjusted EBITDA"). Also, certain corporate-related costs are not allocated to the segments. The reportable segments are consistent with how management views the markets served by Adient and reflect the financial information that is reviewed by its chief operating decision maker.

Financial information relating to Adient's reportable segments is as follows:

Three Months Ended September 30,Twelve Months Ended September 30,
(in millions)2021202020212020
Net Sales
Americas$1,343 $1,796 $6,164 $5,889 
EMEA996 1,398 5,564 5,148 
Asia465 460 2,123 1,822 
Eliminations(33)(57)(171)(189)
Total net sales$2,771 $3,597 $13,680 $12,670 


Appendix
Page 5

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Adjusted EBITDA
Americas$13 $111 $232 $228 
EMEA— 84 277 101 
Asia122 113 486 424 
Corporate-related costs (1)
(17)(21)(78)(80)
Restructuring and impairment costs (2)
(1)(135)(21)(238)
Purchase accounting amortization (3)
(18)(10)(50)(40)
Restructuring related charges (4)
(3)(3)(9)(20)
Gain (loss) on business divestitures - net (5)
(26)12 (26)(13)
Gain on sale / (impairment) of nonconsolidated partially-owned affiliates (9)
1,181 (9)1,214 (231)
Stock based compensation— (7)(36)(15)
Depreciation(75)(81)(285)(295)
Other items (6)
(6)(4)22 (16)
Earnings (loss) before interest and income taxes1,170 50 1,726 (195)
Net financing charges(55)(64)(311)(220)
Other pension income (expense)16 (19)24 (14)
Income (loss) before income taxes$1,131 $(33)$1,439 $(429)

Refer to the Footnote Addendum for footnote explanations.


2. Earnings Per Share

The following table reconciles the numerators and denominators used to calculate basic and diluted earnings (loss) per share:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions, except per share data)2021202020212020
Income available to shareholders
Net income (loss) attributable to Adient$960 $(36)$1,108 $(547)
Weighted average shares outstanding
Basic weighted average shares outstanding94.4 93.9 94.2 93.8 
Effect of dilutive securities:
Stock options, unvested restricted stock and unvested performance share awards1.4 — 1.5 — 
Diluted weighted average shares outstanding95.8 93.9 95.7 93.8 

Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share, which for the three and twelve months ended September 30, 2020 is a result of being in a loss position.


Appendix
Page 6

3. Non-GAAP Measures

Adjusted EBIT, Adjusted EBIT margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income attributable to Adient, Adjusted effective tax rate, Adjusted earnings per share, Adjusted equity income, Adjusted interest expense, Free cash flow and Net debt as well as other measures presented on an adjusted basis are not recognized terms under U.S. GAAP and do not purport to be alternatives to the most comparable U.S. GAAP amounts. Since all companies do not use identical calculations, our definition and presentation of these measures may not be comparable to similarly titled measures reported by other companies. Management uses the identified non-GAAP measures to evaluate the operating performance of the Company and its business segments and to forecast future periods. Management believes these non-GAAP measures assist investors and other interested parties in evaluating Adient's on-going operations and provide important supplemental information to management and investors regarding financial and business trends relating to Adient's financial condition and results of operations. Investors should not consider these non-GAAP measures as alternatives to the related GAAP measures. Reconciliations of non-GAAP measures to their closest U.S. GAAP equivalent are presented below. Reconciliations of non-GAAP measures related to guidance for any future period have not been provided due to the unreasonable efforts it would take to provide such reconciliations.

•Adjusted EBIT is defined as income before income taxes and noncontrolling interests excluding net financing charges, restructuring, impairment and related costs, purchase accounting amortization, transaction gains/losses, other significant non-recurring items, and net mark-to-market adjustments on pension and postretirement plans. Adjusted EBIT margin is adjusted EBIT as a percentage of net sales.
•Adjusted EBITDA is defined as adjusted EBIT excluding depreciation and stock based compensation. Certain corporate-related costs are not allocated to the business segments in determining Adjusted EBITDA. Adjusted EBITDA margin is adjusted EBITDA as a percentage of net sales. Adjusted EBITDA excluding adjusted equity income, each as defined herein, is also presented.
•Adjusted net income attributable to Adient is defined as net income attributable to Adient excluding restructuring, impairment and related costs, purchase accounting amortization, transaction gains/losses, expenses associated with becoming an independent company, other significant non-recurring items, net mark-to-market adjustments on pension and postretirement plans, the tax impact of these items and other discrete tax charges/benefits.
•Adjusted effective tax rate is defined as adjusted income tax provision as a percentage of adjusted income before income taxes.
•Adjusted earnings per share is defined as Adjusted net income attributable to Adient divided by diluted weighted average shares.
•Adjusted equity income is defined as equity income excluding amortization of Adient's intangible assets related to its non-consolidated joint ventures and other unusual or one-time items impacting equity income.
•Adjusted interest expense is defined as net financing charges excluding unusual or one-time items impacting interest expense.
•Free cash flow is defined as cash provided by operating activities less capital expenditures.
•Net debt is calculated as gross debt (short-term and long-term) less cash and cash equivalents.


Appendix
Page 7

Summarized Income Statement Information
(Refer to the Footnote Addendum for footnote explanations and details
of reconciling items between GAAP results and Adjusted results)

Three Months Ended September 30,
20212020
(in millions, except per share data)GAAP ResultsAdj.Adjusted ResultsGAAP ResultsAdj.Adjusted Results
Net sales$2,771 $— $2,771 $3,597 $— $3,597 
Cost of sales (7)
2,734 (5)2,729 3,352 (4)3,348 
Gross profit37 5 42 245 4 249 
Selling, general and administrative expenses (8)
104 (20)84 151 (13)138 
(Gain) loss on business divestitures - net (5)
26 (26)— (12)12 — 
Restructuring and impairment costs (2)
1 (1)— 135 (135)— 
Equity income (loss) (9)
1,264 (1,179)85 79 9 88 
Earnings (loss) before interest and income taxes (EBIT)1,170 (1,127)43 50 149 199 
Memo accounts:
Depreciation75 81 
Equity based compensation costs— 7 
Adjusted EBITDA$118 $287 
Net financing charges (10)
55 (6)49 64 3 67 
Other pension expense (income) (11)
(16)14 (2)19 (21)(2)
Income (loss) before income taxes1,131 (1,135)(4)(33)167 134 
Income tax provision (benefit) (12)
159 (154)5 (18)19 1 
Net income (loss) attributable to Adient960 (983)(23)(36)145 109 
Diluted earnings (loss) per share10.02 (10.26)(0.24)(0.38)1.53 1.15 
Diluted weighted average shares95.8 (1.4)94.4 93.9 0.5 94.4 





















Appendix
Page 8

Summarized Income Statement Information
(Refer to the Footnote Addendum for footnote explanations and details
of reconciling items between GAAP results and Adjusted results)

Twelve Months Ended September 30,
20212020
(in millions, except per share data)GAAP ResultsAdj.Adjusted ResultsGAAP ResultsAdj.Adjusted Results
Net sales$13,680 $— $13,680 $12,670 $— $12,670 
Cost of sales (7)
12,854 27 12,881 12,078 (10)12,068 
Gross profit826 (27)799 592 10 602 
Selling, general and administrative expenses (8)
537 (63)474 558 (54)504 
(Gain) loss on business divestitures - net (5)
26 (26)— 13 (13)— 
Restructuring and impairment costs (2)
21 (21)— 238 (238)— 
Equity income (loss) (9)
1,484 (1,213)271 22 243 265 
Earnings (loss) before interest and income taxes (EBIT)1,726 (1,130)596 (195)558 363 
Memo accounts:
Depreciation285 295 
Equity based compensation costs36 15 
Adjusted EBITDA$917 $673 
Net financing charges (10)
311 (93)218 220 3 223 
Other pension expense (income) (11)
(24)15 (9)14 (23)(9)
Income (loss) before income taxes1,439 (1,052)387 (429)578 149 
Income tax provision (benefit) (12)
249 (150)99 57 27 84 
Net income (loss) attributable to Adient1,108 (909)199 (547)543 (4)
Diluted earnings (loss) per share11.58 (9.50)2.08 (5.83)5.79 (0.04)
Diluted weighted average shares95.7 — 95.7 93.8 — 93.8 





















Appendix
Page 9

Segment Performance:
Three months ended September 30, 2021
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$1,343 $996 $465 $(33)$2,771 
Adjusted EBITDA$13 $— $122 $(17)$118 
Adjusted EBITDA margin1.0 %— %26.2 %N/A4.3 %
Three months ended September 30, 2020
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$1,796 $1,398 $460 $(57)$3,597 
Adjusted EBITDA$111 $84 $113 $(21)$287 
Adjusted EBITDA margin6.2 %6.0 %24.6 %N/A8.0 %
Twelve months ended September 30, 2021
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$6,164 $5,564 $2,123 $(171)$13,680 
Adjusted EBITDA$232 $277 $486 $(78)$917 
Adjusted EBITDA margin3.8 %5.0 %22.9 %N/A6.7 %
Twelve months ended September 30, 2020
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$5,889 $5,148 $1,822 $(189)$12,670 
Adjusted EBITDA$228 $101 $424 $(80)$673 
Adjusted EBITDA margin3.9 %2.0 %23.3 %N/A5.3 %


The following table presents adjusted EBITDA excluding adjusted equity income:

Three Months Ended
September 30,		Twelve Months Ended September 30,
(in millions)2021202020212020
Adjusted EBITDA$118 $287 $917 $673 
Adjusted Equity Income85 88 271 265 
Adjusted EBITDA Excluding Adjusted Equity Income$33 $199 $646 $408 
% of Sales1.2 %5.5 %4.7 %3.2 %


Appendix
Page 10

The following table reconciles income (loss) before income taxes to adjusted income before income taxes and presents the related effective tax rate and adjusted effective tax rate:

Three Months Ended September 30,
20212020
(in millions, except effective tax rate)Income (loss) before income taxesTax impactEffective tax rateIncome (loss) before income taxesTax impactEffective tax rate
As reported$1,131 $159 14.1%$(33)$(18)54.5%
Adjustments (12)
(1,135)(154)13.6%167 19 11.4%
As adjusted$(4)$5 N/M$134 $1 0.7%

Twelve Months Ended September 30,
20212020
(in millions, except effective tax rate)Income (loss) before income taxesTax impactEffective tax rateIncome (loss) before income taxesTax impactEffective tax rate
As reported1,439 $249 17.3%$(429)$57 (13.3)%
Adjustments (12)
(1,052)(150)14.3%578 27 4.7%
As adjusted$387 $99 25.6%$149 $84 56.4%

* Measure not meaningful.


The following table reconciles net income (loss) attributable to Adient to adjusted net income (loss) attributable to Adient:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Net income (loss) attributable to Adient$960 $(36)$1,108 $(547)
Restructuring and impairment costs (2)
1 135 21 238 
Purchase accounting amortization (3)
18 10 50 40 
Restructuring related charges (4)
3 3 9 20 
(Gain) loss on business divestitures - net (5)
26 (12)26 13 
Pension mark-to-market and settlement gain/loss (11)
(14)21 (15)23 
(Gain) on sale / impairment of nonconsolidated partially-owned affiliates (9)
(1,181)9 (1,214)231 
Interest accretion on long-term receivable (10)
— — (6)— 
Gain on partial extinguishment of long-term debt (10)
— (3)— (3)
Write off of deferred financing charges upon repurchase of debt (10)
— — 20 — 
Derivative loss on Yanfeng transaction6 — 30 — 
Premium paid on repurchase of debt— — 49 — 
Other items (6)
6 4 (22)16 
Impact of adjustments on noncontrolling interests (13)
(2)(3)(7)(8)
Tax impact of above adjustments and other tax items (12)
154 (19)150 (27)
Adjusted net income (loss) attributable to Adient$(23)$109 $199 $(4)

Refer to the Footnote Addendum for footnote explanations

Appendix
Page 11

The following table reconciles diluted earnings (loss) per share as reported to adjusted diluted earnings per share:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
2021202020212020
Diluted earnings (loss) per share as reported$10.02 $(0.38)$11.58 $(5.83)
Restructuring and impairment costs (2)
0.01 1.43 0.22 2.54 
Purchase accounting amortization (3)
0.19 0.11 0.52 0.43 
Restructuring related charges (4)
0.03 0.03 0.09 0.21 
(Gain) loss on business divestitures - net (5)
0.27 (0.13)0.27 0.14 
Pension mark-to-market and settlement gain/loss (11)
(0.15)0.22 (0.16)0.25 
(Gain) on sale / impairment of nonconsolidated partially-owned affiliates (9)
(12.32)0.10 (12.68)2.46 
Interest accretion on long-term receivable (10)
— — (0.06)— 
Gain on partial extinguishment of long-term debt (10)
— (0.03)— (0.03)
Write off of deferred financing charges upon repurchase of debt (10)
— — 0.21 — 
Derivative loss on Yanfeng transaction0.06 — 0.31 — 
Premium paid on repurchase of debt— — 0.51 — 
Other items (6)
0.06 0.04 (0.23)0.17 
Impact of adjustments on noncontrolling interests (13)
(0.02)(0.03)(0.07)(0.09)
Tax impact of above adjustments and other tax items (12)
1.61 (0.21)1.57 (0.29)
Adjusted diluted earnings (loss) per share$(0.24)$1.15 $2.08 $(0.04)

The following table presents calculations of net debt:

September 30,
(in millions, except net leverage)20212020
Cash$1,521 $1,692 
Total debt3,696 4,307 
Net debt$2,175 $2,615 

The following table reconciles cash from operating activities to free cash flow:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Operating cash flow$(102)$518 $260 $246 
Capital expenditures(74)(68)(260)(326)
Free cash flow$(176)$450 $— $(80)



Appendix
Page 12

The following table reconciles adjusted EBITDA to Free cash flow:

FY21FY20
(in millions)Q4YTDQ4YTD
Adjusted EBITDA$118 $917 $287 $673 
(+/-) Net equity in earnings(62)44 (61)12 
(-) Restructuring (cash)(24)(151)(23)(93)
(+/-) Net Customer Tooling3 13 4 18 
(+/-) Trade Working Capital (Net AR/AP + Inventory)(17)20 204 (180)
(+/-) Accrued Compensation(27)8 28 (14)
(-) Interest paid(55)(239)(59)(207)
(+/-) Tax refund/taxes paid(26)(78)(19)(98)
(+/-) Non-income related taxes (VAT)(15)(88)61 104 
(+/-) Commercial settlements4 (83)68 49 
(+/-) Other(1)(103)28 (18)
Operating cash flow(102)260 518 246 
Capital expenditures(74)(260)(68)(326)
Free cash flow$(176)$— $450 $(80)




Appendix
Page 13


Footnote Addendum

(1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance.

(2) Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420 and one-time asset impairments, as follows:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Restructuring charges$(1)$(109)$(13)$(185)
Held for sale and other asset adjustments— (26)(8)(26)
Futuris China intangible assets impairment— — — (27)
$(1)$(135)$(21)$(238)

(3) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income.

(4) Reflects non-qualified restructuring charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420 along with restructuring costs at partially owned affiliates recorded within equity income.

(5) (Gain) loss on business divestitures include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Adient Aerospace deconsolidation$— $— $— $(4)
Sale of RECARO business— — — (21)
Sale of certain non-core China business(5)— (5)— 
Gain associated with the 2020 Yanfeng Transaction— 12 — 12 
Loss associated with the 2021 Yanfeng Transaction(21)— (21)— 
$(26)$12 $(26)$(13)

(6) Other items include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Transaction costs$(6)$(4)$(19)$(15)
Brazil indirect tax recoveries— — 36 — 
Tax adjustments at YFAI— — — (1)
Gain on previously held interest at YFAS in an affiliate— — 5 — 
$(6)$(4)$22 $(16)



Appendix
Page 14


(7) The adjustments to cost of sales include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Purchase accounting amortization$(1)$(1)$(1)$(1)
Restructuring related charges(4)(3)(8)(9)
Brazil indirect tax recoveries— — 36 — 
$(5)$(4)$27 $(10)

(8) The adjustments to selling, general and administrative costs include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Purchase accounting amortization$(15)$(9)$(44)$(36)
Restructuring related charges1 — — (3)
Transaction costs(6)(4)(19)(15)
$(20)$(13)$(63)$(54)

(9) The adjustments to equity income include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Purchase accounting amortization
$2 $— $5 $3 
Gain on previously held interest at YFAS in an affiliate— — (5)— 
Restructuring related charges
— — 1 8 
(Gain) on sale / impairment of nonconsolidated partially-owned affiliates
(1,181)9 (1,214)231 
Tax adjustments at YFAI— — — 1 
$(1,179)$9 $(1,213)$243 

(10) The adjustments to net financing charges include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Interest accretion on long-term receivable$— $— $6 $— 
Premium paid on repurchase of debt— — (49)— 
Write off of deferred financing charges upon repurchase of debt— — (20)— 
Derivative loss on Yanfeng transaction(6)— (30)— 
Gain on partial extinguishment of long-term debt— 3 — 3 
$(6)$3 $(93)$3 


Appendix
Page 15

(11) The adjustments to other pension expense (income) include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Mark-to-market adjustments$14 $(22)$15 $(22)
One-time settlement and curtailment gain (loss)— 1 — (1)
$14 $(21)$15 $(23)

(12) The adjustments to income tax provision (benefit) include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2021202020212020
Tax rate change$— $— $— $1 
Brazil indirect tax recoveries— — (12)— 
Valuation allowances (22)(5)(22)(5)
Withholding tax adjustments2 — 13 — 
Sale of fabrics business— 3 — 3 
(Gain) on sale / (impairment) of nonconsolidated partially-owned affiliates(133)12 (138)16 
Benefits associated with restructuring and impairment charges— 2 — 7 
Other reconciling items(1)7 9 5 
$(154)$19 $(150)$27 

(13) Reflects the impacts of adjustments, primarily purchase accounting amortization and changes in income tax rates, on noncontrolling interests.